The famed Ziegfeld Theater in Midtown Manhattan will close its doors in the coming weeks, and reopen next year as an event space that caters to galas and corporate functions, the building’s owner said on Wednesday.

The renamed Ziegfeld Ballroom is scheduled to open in the fall of 2017, the owner, Fisher Brothers, said in a statement. The new space will include one of the largest ballrooms in the city and accommodate up to 1,200 people, the statement said.

The Ziegfeld, at 141 West 54th Street, has been a popular venue for Hollywood film premieres and a favorite of local film buffs. But those things were not paying the bills.

In an interview with The Hollywood Reporter in April, James L. Dolan, the chief executive of Cablevision, which runs the movie theater, said it would “probably” be shut down. “It loses a lot of money,” Mr. Dolan told the magazine. “The theater business is a tough business.”

Cablevision said on Wednesday that it was notified by the building’s owners that they had found a new tenant, effectively taking the theater off its hands.

“We will be exiting our lease in the coming weeks to accommodate the new tenant,” the company said in a statement. “We wish the owners of the Ziegfeld Theatre the best of luck with the future of the establishment and with the new tenant that they have selected.”

The new space will be managed by Core Ziegfeld L.L.C., which owns and operates Gotham Hall, another cavernous event space in Midtown Manhattan, at 1356 Broadway, at 36th Street. B. Allan Kurtz, the managing director of Gotham Hall, will also run the Ziegfeld Ballroom, Core Ziegfeld said.

The Ziegfeld Theater cinema opened in 1969, Fisher Brothers said, replacing an original theater built in 1927 by Florenz Ziegfeld, the Broadway legend who produced the famed Ziegfeld Follies, a song and dance revue that was a Jazz Age sensation.

Correction:Jan. 27, 2016

An article in some copies on Thursday about the pending closing of the Ziegfeld Theater in Midtown Manhattan misstated the address of the theater. It is at 141 West 54th Street, not 1345 Avenue of the Americas at West 54th Street. (The latter was the address of the original Ziegfeld Theater, which was built in 1927 and was torn down in 1966.)

A version of this article appears in print on , Section A, Page 25 of the New York edition with the headline: Ziegfeld to Go From Cinema to a Ballroom. Order Reprints | Today’s Paper | Subscribe